Goodyear Tire Shares Fall
Goodyear Tire shares shed around 10 p.c. of their value after J.P. Morgan Securities warned that investor confidence in management may begin to slip and with it Goodyear’s share price.
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Nokian to purchase ISKO
Product NewsNokian Tyres has agreed to purchase up to 94 % of the ISKO-shares. ISKO is the largest Finnish Tyre wholesaler and retailer. As soon as the transaction has been completed Nokian Tyres will have the largest equity in “Nordic Europe” consisting of 117 depots with 750 employees in Scandinavia together with Estonia and Latvia.
Growing figures for Continental
Product NewsIn the first nine months of this year, Continental’s sales rose to 6.8 billion Euros, with an EBIT of 385 million Euros. The largest contribution still comes from passenger car tyres, although Continental emphasises the growing importance of its role as a systems supplier. However, it seems that there will not be any striking developments in this segment that will affect the market in the immediate future. But Dr. Kessel is sure, saying: “Continental is on the way to Total Chassis Management.” Obviously, the company wants to enhance its profile at the expense of its tyre competitors, many of whose shares are performing badly on the world’s stock markets. However, Continental’s share price at the moment is also disappointing.
Avon Rubber Profits Fall
Product NewsAvon Rubber has blamed falling car production in the UK for a 40% drop in annual profits to £3.3 million. Direct sales of automotive and technical products to Ford and Rover fell £7.6 million to £27.1 million. Shares fell 12.5p to 455p.
Goodyear to Close Factory in Italy
Product NewsGoodyear has told bank analysts that it will close a large factory in Italy that produces six million tyres a year. Goodyear produced about 55 million tyres in Europe this year and intends to reduce the production capacity from 72 million tyres (after the Dunlop take-over) to about 62 million by 2002. After Goodyear’s shares lost more than 40 per cent of their value, they announced plans to close more than one factory and increase production in the remaining European plants by introducing a seven day operation.
